Individuals and enterprises are currently employing distributed electrical generation systems with increasing frequency. A distributed electrical generation system may also be called a distributed energy resource, or distributed generator, or distributed resource.
A distributed electrical generation system may be an electric generation facility connected to an Area Electric Power System (Area EPS). A distributed electrical generation system may be a small-scale electric generator located next to and connected to the load being served either with or without an electric grid interconnection. A distributed electrical generation system may use an advanced turbine, a reciprocating engine, a fuel cell, a photovoltaic panel, a wind turbine, a micro-turbine, etc. to generate electricity.
A typical purpose of such a distributed electrical generation system is to reduce its owner's electricity bill, as well as, in some cases, to utilize electricity generated in a more environmentally friendly method than the power provided by the local electrical utility.
One of the factors contributing to the expense of such a system is associated with hooking up the distributed electrical generation system to the electricity grid, which has many requirements, such as those specified in the IEEE standard 1547 or other, similar standards in effect in Europe and other areas of the world for interconnecting distributed resources with electric power systems.
Although a distributed electrical generation system may be relatively easily designed to meet such requirements, it is rather expensive to pass the full testing suite required to obtain regulatory approval. As a result, novel designs may be delayed, or not implemented at all, because the volume of a small series does not justify the expense of undergoing the approval process, which, in some cases, may cost US$100,000 or more.
In other cases, distributed electrical generation systems may be connected to the grid without obtaining regulatory approval, sometimes with disastrous consequences.
More detailed information about distributed electrical generation systems can be found in Institute of Electrical and Electronics Engineers (IEEE) standard 1547, which is incorporated herein by reference.